Australian dollar jumps after US Fed holds rates

The Aussie dollar has bounced after the greenback fell as the US Federal Reserve downgraded rates projections.

The Australian dollar has bounced after the US dollar fell as the Federal Reserve downgraded its rates projections.

At 7am (AEST), the local unit was trading at US76.28 cents, sharply higher from US75.65 yesterday.

The US Federal Reserve left interest rates unchanged but surprisingly downgraded its rate projections, Bank of New Zealand strategist Kymberly Martin said.

“The Fed said it was still keeping its options open to hiking in December,” Ms Martin said.

“But offsetting that hawkish comment was the fact the Fed Reserve had downgraded its projections for rate hikes in the future. Ultimately, that is what the market has taken on board.”

AAP